Is the house worth renting or should I sell?

[Christopher Reynolds]

Good morning,

To start, I am new to Bigger Pockets and the forums an would like to say hello to everyone!

The subject at hand is the house that I am currently living in.  I am looking to move into a different home and am attempting to determine if it is worth renting my current home or just selling it outright.

It's a split level foyer home with 2,400 sqft, 4 bedrooms, 2.5 baths, in a nice neighborhood. Three years ago, the house was refinanced for $145k at 4.25% on a 25 year conventional loan. The LTV requirement was met and the PMI has been removed from the payments which currently come in just shy of $1,000 a month for P&I, Insurance, and Taxes. Currently the outstanding loan amount is $34,000 under the tax assessment so I can use the equity in future property investing.

Yesterday an individual from a respected property group in the area stated the house would rent for $1,300 a month (which matches my research).  They charge 10% monthly rent, an extra 25% for the lease signing, and 5% for a yearly removal.  This group would be managing the property as they have low vacancy rates and only work with year long leases with no early terminations.  The first month charge would be $325, and $130 a month afterwards.  The tenant would pay all utility bills as well as maintain the yard.

The house is in good condition and has no immediate issues, all the the appliances are roughly 6 years old.  The average monthly costs would be ~$1130, leaving between $170 and $180 potential monthly cash flow or $1,750 for the first year.  The rent doesn't meet the 1% rule but the potential for positive cash flow is there.  Being a first time land lord, is this an acceptable number for a single family home rental?

Any advice would be well received.  Thank you!